sgtreport | Please understand this, China fully understands consumers in the West are tapped out.
They can see through the bogus numbers Washington produces and the
wonks on Wall St. continually tout. They understand the Western system
is built entirely on debt as in I OWE YOU! And they understand the
system was set up originally as an “IOU nothing” system! They
understand “it’s over”.
I do believe China wants to assume “a” if not THE reserve
currency status in the future. They know they possess more gold than
the U.S.. Would it not make sense to devalue your currency and
even make it undervalued for the start of a new system for competitive
reasons? Yes I know, they do not have enough gold to back the yuan
currently …at current price. Will they pull a page out of FDR’s
playbook and revalue gold higher since they are the largest hoarder in
the world? Could they confiscate from their loyal citizens to leapfrog
their holdings even further? Remember, the tried and true way(s) out of
deflation are to print, devalue (versus neighbors AND gold) and of
course go to war. Whether you want to believe it or not, we are now at
war both financially and technologically. Unfortunately, financial and
trade wars often times turn into hot wars. China just fired a shot
heard ’round the world for those listening and it was not a celebratory
shot by any means!
To finish, could it be China knows this will end in a
complete collapse of the financial markets AND real economies of the
world, in particular of the West? They already have the
largest productive capacity in the world. Are they going to devalue
their currency so it is “competitive” when the reset occurs? Have they
stripped the West of their gold reserves leaving China with the greatest
“monetary” hoard on the planet? Could there be a better position to be
in than having the most “money” and greatest productive capacity …with a
middle/lower class of your society numbering in the hundreds of
millions needing “stuff” to truly enter the 21st century?
